S T A T E   O F   N E W   Y O R K
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                                  8218

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            October 24, 2013
                               ___________

Introduced  by  M. of A. SEPULVEDA, ROSA, ROBERTS, ABINANTI -- read once
  and referred to the Committee on Higher Education

AN ACT in relation to authorizing the commission of a study by the board
  of regents of the state university of New York of feasible alternative
  methods of funding a college  education  at  public  four-year  insti-
  tutions of higher learning in New York state

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The Legislature recognizes  that  post-secondary  education
has  expanded  opportunities for New Yorkers to qualify for high-quality
jobs and entry into the middle class, providing clear benefits  to  this
state's economy.
  Regrettably,  public  investment in higher education in this state has
decreased over the past decade, resulting in  substantial  increases  in
annual  tuition, fees and room and board imposed by public four-year and
two-year institutions of higher education in the state. These  increases
have  out-paced  increases  in  the  average family income in the state,
forcing students to incur larger amounts of debt in order to  afford  to
attend  college.  The  average  student loan debt of students graduating
from public four-year institutions of higher education in New  York  now
exceeds $25,000.
  Such high levels of student debt are damaging not only to the individ-
ual  student's  ability  to succeed financially but also will have grave
consequences for the future economy of this state.
  The Legislature finds that it must halt the decrease  in  the  state's
support  for public education and, over time, must increase its contrib-
ution to the funding of higher education. It also finds that  the  state
must  immediately seek another approach to financing the students' share
of the cost of public higher education  in  this  state  that  will  not
result  in  students  graduating  from  New  York's  public colleges and
universities burdened with debt.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11731-01-3
              

A. 8218                             2

  S 2. The board of regents of the state university of  New  York  shall
consider  the  creation of a proposed pilot program called "Pay Forward,
Pay Back".
  1. The pilot program would:
  (a)  Replace  the current system of charging students tuition and fees
for enrollment at public institutions of higher education; and
  (b) Identify one or more public institutions of  higher  education  to
participate in the pilot program.
  2.  If  the  board  of  regents  determines  that  a  pilot program is
warranted, the commission shall submit a proposed pilot program  to  the
2015 regular session of the legislature for approval.
  3. The proposed pilot program shall:
  (a)  Allow students who are residents of this state, as defined by the
institution, and who qualify for admission to the institution to  enroll
in the institution without paying tuition or fees;
  (b)  Provide  that,  in  lieu of paying tuition or fees, students must
sign binding contracts to pay to the state of New York or  the  institu-
tion  a certain percentage of the student's annual adjusted gross income
upon graduation from the institution for a specified number of years;
  (c) Specify the number of years and the percentage of annual  adjusted
gross  income  for  contracts at each participating institution and base
the specifications on research to date; and
  (d) Establish an immediate funding source for the first 15 to 20 years
of the pilot program and include the establishment of a  revolving  fund
to deposit payments made under the pilot program.
  4. The pilot program may vary by institution depending on:
  (a) The total cost of education at the institution.
  (b) The portion of the cost that is paid by the state of New York.
  (c) The number of years specified in the contract.
  (d)  The  percentage  of annual adjusted gross income specified in the
contract.
  S 3. 1. The board of regents of the state university of New York shall
conduct a study on whether public universities in the state can success-
fully implement a tuition  freeze  that  will  guarantee  that  incoming
undergraduate  students  have  the same tuition rate for four years. The
study must include an analysis of:
  (a) The 'Western Tuition Promise' offered by Western Oregon  Universi-
ty;
  (b) The 'Finish in Four' program proposed in Florida; and
  (c)  Ways  of  mitigating  the financial strain that the adoption of a
tuition freeze would place on a university's finances.
  2. The board of regents shall submit a report on the  study  described
in  subdivision one of this section to the committees relating to higher
education during the 2014 regular session of the legislature.
  S 4. This act shall take effect immediately.